Future, the UK consumer magazine publisher, has revealed that its US division is struggling as it announces a 9% fall in advertising revenue for the three months to December 31.
The publisher, which produces a special interest titles, events and websites in the gaming, music, film and active sectors in the UK and US, also revealed its circulation revenue fell by 8% in the same period.
In an interim financial statement released this morning (January 27), it says its US business has a “higher exposure” to the flagging ad market. The US market accounts for 45% of its revenue, with the rest from ad revenue, cover price and subscriptions in the UK.
The publisher says its flagship gaming titles, which account for 32% of its operations, have suffered due to an “accelerated decline in PC gaming and the very tough US advertising environment.”
However, the media group says its other sectors have proved more resilient, while its online advertising revenues have increased by 25% and now represent a quarter of its total advertising income.
Stevie Spring, Future chief executive, says the publisher’s “focus” for this year will be “guiding our business effectively through the unchartered waters of the current macroeconomic environment.”
She added the group will be “building in greater cost flexibility” to deliver profit expectations for the full year.